Inter-Bank Market: Rupee weakens against dollar

Rupee depreciated almost 49% since December 2017

KARACHI: The rupee weakened against the dollar at Rs158.3/158.8 in the inter-bank market on Friday compared with Thursday’s close of Rs157.8/158.3, according to forex.pk.

Earlier, the SBP let the rupee depreciate massively in the inter-bank market after finalising an agreement with the International Monetary Fund (IMF) for a loan programme on May 12.

The IMF has asked Pakistan to end state control of the rupee and let the currency move freely to find its equilibrium against the US dollar and other major world currencies.

Also, the World Bank, which finances some of the infrastructure and social safety net projects in Pakistan, has supported the idea of leaving the rupee free from state control in a bid to give much-needed boost to exports and fix a faltering economy.

Cumulatively, the rupee has depreciated almost 49% since December 2017, according to the central bank. Earlier, the central bank said it “will continue to closely monitor the situation and stands ready to intervene in case of any unwarranted volatility in the foreign exchange market.”

Published in The Express Tribune, July 13^th, 2019.

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